3rd IG Meeting – Region South-South East 9th October 2007, Maribor, Slovenia

2 IG meeting agenda – 1 Agenda itemResponsible 11.00OpeningCo-chairs 11:15 Presentation session I - Best practice standardised bulletin board - Best practice: TAG - Summary of planned investments in the region TSO TAG RCC 12:00 Presentation session II - Implementation of EASEE gas CBPs in the region - Removing remaining obstacles to implementation of IA/OBA - IPA/OBA in practice: Baumgarten - Best practice provision of OSS service - OSS in practice: GATRAC - Current status of planning: Transparency platform - Proposal of a Regional ISO Model as a way forward? EASEE gas TSOs and shippers CEGH RWE TGN TSOs EFET

3 IG meeting agenda – 2 Agenda itemResponsible 14:00 Presentation session III - Regional Cooperation in the Third Package - Regional Entry Exit Tariff System: Update - Hub development PSV and CEGH EC RCC CEGH, PSV, EFET, Eurelectric 15:00Coffee break 15:30AOB 16:00ClosureCo-chairs

4 Action Points 1-3 of the last IG meeting Implementation TFActions Responsible/ Result until Best-practice standardised bulletin board - harmonized content for individual TSO platforms accordnig TAG and OMV best practice TSOs presentation at next IG Summary of planned investments in the region (incl. Storage) - inclusion of information on expansion projects (Transmission&Storage) into the survey RCC presentation at next IG Removing remaining obstacles to implementation of IPA/OBA - further update on implementation :TSOs will focus on concluding IPAs where these are not yet in place; Implementation of an OBA regime is dependent on certain prerequisites and will always be conditional; Shippers must be equally involved in the implementation process by complying with the nomination rules set up by the TSOs - Baumgarten: all involved stakeholders work on a solution within the next 3 months incl. a list of remaining ostacles TSOs, Shippers CEGH presentation at next IG

5 Action Points 4-6 of the last IG meeting Implementation TFActions Responsible/ Result until Best-practice standardised bulletin board - harmonized content accordnig TAG and OMV best practice TSOs presentation at next IG meeting Summary of planned investments in the region (incl. Storage) - inclusion of information on investments into survey RCC presentation at next IG meeting Removing remaining obstacles to implementation of IPA/OBA - further update on implementation and - Baumgarten: all involved stakeholders work on a solution within the next 3 months incl. a list of remaining ostacles CEGH presentation at next IG meeting Best practice provision of OSS service - Transparency platform (GTE pilot project) - TSOs offer OSS service to shippers who request it - best practice OSS (OMV, TSOs presentation at next IG REETS - presentation of benchmarking results - simulation of introduction of REETS RCC presentation at next IG Hub development as regional balancing market - update on implementation of next steps according schedule CEGH/EFET PSV/EFET presentation at next IG

6 IG meeting agenda – 1 Agenda itemResponsible 11.00OpeningCo-chairs 11:15 Presentation session I - Best practice standardised bulletin board - Best practice: TAG - Summary of planned investments in the region TSO TAG RCC 12:00 Presentation session II - Implementation of EASEE gas CBPs in the region - Removing remaining obstacles to implementation of IA/OBA - IPA/OBA in practice: Baumgarten - Best practice provision of OSS service - OSS in practice: GATRAC - Current status of planning: Transparency platform - Proposal of a Regional ISO Model as a way forward? EASEE gas TSOs and shippers CEGH RWE TGN TSOs EFET

7 Best-practice standardised bulletin board  What was expected:  Implementation of an online, user-friendly, and secure trading platform.  implementation of an online platform using a harmonised standard (best practice TAG) for transmission capacity on all major transit systems of the region SEE

8 Example to be used for all Austrian transit capacities

TAG Bulletin Board Harmonised Bulletin Board (3) * * Optional information may be in the form of an attachment or as directly published text

10 Action POINT 1 - Best-practice standardised bulletin board  Suggested next steps  Coordinator: TAG  Action Point from last IG meeting:  Implementation of the standard content until next IG meeting  Next steps:  Preparation of guideline for the standard bulletin board by TSOs  RCC to comment on guideline before implementation  Role of RCC to monitor implementation

11 IG meeting agenda – 1 Agenda itemResponsible 11.00OpeningCo-chairs 11:15 Presentation session I - Best practice standardised bulletin board - Best practice: TAG - Summary of planned investments in the region TSO TAG RCC 12:00 Presentation session II - Implementation of EASEE gas CBPs in the region - Removing remaining obstacles to implementation of IA/OBA - IPA/OBA in practice: Baumgarten - Best practice provision of OSS service - OSS in practice: GATRAC - Current status of planning: Transparency platform - Proposal of a Regional ISO Model as a way forward? EASEE gas TSOs and shippers CEGH RWE TGN TSOs EFET

12 Summary of planned investments in the region First analysis  Natural gas demand growth: Where data have been submitted, there is an indication of growing natural gas consumption up to 2015  This is the case in eg: Austria, Czech Republic, Italy, Slovenia, Poland  Infrastructure investment  At the TSO level:  Building activity in the region mainly as reinforcement, only little or few true new projects  Examples: TAG compressor stations, reinforcement in Italy  New infrastructure in Czech Republic and Italy  At the SSO level  Both expansion and new projects  Examples: Expansion: 2 projects (A), Virtual storage (CZ), expansion (I, P), new capacity: A, CZ, H, I, P, Rom, Sl (preliminary analysis)

13 Summary of planned investments in the region Implications of findings  Natural gas demand growth seems unquestioned in line with: rising energy demand, economic growth etc.  Expansion/new infrastructure mainly in storage area Fewer infrastructure projects in terms of volume  However: Infrastructure projects might not ‘come online’ until  From a regulatory viewpoint: Issue of capacity shortages unsolved  Clear acknowledgement: SSE region affected by capacity shortages in a heterogeneous manner:  North of the region (Poland, Czech Republic) different from Southern part (Austria, Italy)  Impact of LNG both in the North (Poland) and South (Croatia-Italy-Austria) [potentially]

14 Further analysis:  Pipeline capacity: Is there enough (cf. rout assessment)?  Congestion scenarios 2010, 2015, 2020  Expansion projects till 2020  Storage capacity: A flourishing market-but how much capacity will be available to the market?  Congestion scenarios 2010, 2015, 2020  Expansion projects till 2020  Market needs till 2020  Impact of LNG: What will it be?  Projects that have an influence on the region Summary of planned investments in the region

15 Further data needs and next steps  NRAs to complete natural gas demand forecast (national level)  RCC to ask shippers and traders (EFET and EURELECTRIC) to submit their estimates regarding natural gas demand per country in the region  RCC to ask TSOs and SSOs to cross check the information provided and update it if required Summary of planned investments in the region

16 IG meeting agenda – 1 Agenda itemResponsible 11.00OpeningCo-chairs 11:15 Presentation session I - Best practice standardised bulletin board - Best practice: TAG - Summary of planned investments in the region TSO TAG RCC 12:00 Presentation session II - Implementation of EASEE gas CBPs in the region - Removing remaining obstacles to implementation of IA/OBA - IPA/OBA in practice: Baumgarten - Best practice provision of OSS service - OSS in practice: GATRAC - Current status of planning: Transparency platform - Proposal of a Regional ISO Model as a way forward? EASEE gas TSOs and shippers CEGH RWE TGN TSOs EFET

17 IG meeting agenda – 1 Agenda itemResponsible 11.00OpeningCo-chairs 11:15 Presentation session I - Best practice standardised bulletin board - Best practice: TAG - Summary of planned investments in the region TSO TAG RCC 12:00 Presentation session II - Implementation of EASEE gas CBPs in the region - Removing remaining obstacles to implementation of IA/OBA - IPA/OBA in practice: Baumgarten - Best practice provision of OSS service - OSS in practice: GATRAC - Current status of planning: Transparency platform - Proposal of a Regional ISO Model as a way forward? EASEE gas TSOs and shippers CEGH RWE TGN TSOs EFET

18 Removing remaining obstacles to implementation of IPA/OBA Interconnection point (GTE map) affected TSOsreported statusactual implementation? Lanzot (54)RTN SPP under negotiation Hora Svate Kateriny (22b)RTN WINGAS in placeOK Waidhaus(24)RTN EON GT, GDF DT under negotiation Oberkappel (25)BOG EON GT, GDF DT under negotiation Velke Kapusany (55)NAFTOGAZ SPP in placeOK Tarvisio (49)TAG SRG under negotiation Murfeld (51)OMV GEOPLIN under negotiationmid 2007? Gorizia (48)GEOPLIN SRG under negotiationmid 2007? Baumgarten (55)SPP OMV, TAG, BOG under negotiationmid 2007?

19 Action Point 3: Removing remaining obstacles to implementation of IPA/OBA Suggested next steps Affected TSOs Action Point of last IG meeting:  CEGH will coordinate a solution for Baumgarten within the next 3 months and present the results at the next meeting Next steps:  CEGH to outline barriers for conclusion of IPA/OBA at Baumgarten Timing:  CEGH and involved TSOs to conclude IPA/OBA until the end of 2007

20 IG meeting agenda – 1 Agenda itemResponsible 11.00OpeningCo-chairs 11:15 Presentation session I - Best practice standardised bulletin board - Best practice: TAG - Summary of planned investments in the region TSO TAG RCC 12:00 Presentation session II - Implementation of EASEE gas CBPs in the region - Removing remaining obstacles to implementation of IA/OBA - IPA/OBA in practice: Baumgarten - Best practice provision of OSS service - OSS in practice: GATRAC - Current status of planning: Transparency platform - Proposal of a Regional ISO Model as a way forward? EASEE gas TSOs and shippers CEGH RWE TGN TSOs EFET

21 Best practice provision of OSS service  What was expected:  Practical implementation of a voluntary one-stop-shop (OSS) service based on the recommendations of the OSS study  Information requirements  Capacity information  Cumulative transportation tariff for the requested route  Contract information to be signed with different parties  Service fee for the OSS service

22 Action Point 4: Best practice provision of OSS service Suggested next steps  Coordinator: RWE TGN / OMV Gas  Next steps:  TSOs of the region are invited to participate in the GATRAC platform  TSOs offer OSS service to shippers who request the service according to best practice OSS ( OMV Gas)  Timing: update next meeting  Role of RCC to monitor implementation

23 IG meeting agenda – 1 Agenda itemResponsible 11.00OpeningCo-chairs 11:15 Presentation session I - Best practice standardised bulletin board - Best practice: TAG - Summary of planned investments in the region TSO TAG RCC 12:00 Presentation session II - Implementation of EASEE gas CBPs in the region - Removing remaining obstacles to implementation of IA/OBA - IPA/OBA in practice: Baumgarten - Best practice provision of OSS service - OSS in practice: GATRAC - Current status of planning: Transparency platform - Proposal of a Regional ISO Model as a way forward? EASEE gas TSOs and shippers CEGH RWE TGN TSOs EFET

24 IG meeting agenda – 1 Agenda itemResponsible 11.00OpeningCo-chairs 11:15 Presentation session I - Best practice standardised bulletin board - Best practice: TAG - Summary of planned investments in the region TSO TAG RCC 12:00 Presentation session II - Implementation of EASEE gas CBPs in the region - Removing remaining obstacles to implementation of IA/OBA - IPA/OBA in practice: Baumgarten - Best practice provision of OSS service - OSS in practice: GATRAC - Current status of planning: Transparency platform - Proposal of a Regional ISO Model as a way forward? EASEE gas TSOs and shippers CEGH RWE TGN TSOs EFET

25 IG meeting agenda – 2 Agenda itemResponsible 14:00 Presentation session III - Regional Cooperation in the Third Package - Regional Entry Exit Tariff System: Update - Hub development PSV and CEGH EC RCC CEGH, PSV, EFET, Eurelectric 15:00Coffee break 15:30AOB 16:00ClosureCo-chairs

26 IG meeting agenda – 2 Agenda itemResponsible 14:00 Presentation session III - Regional Cooperation in the Third Package - Regional Entry Exit Tariff System: Update - Hub development PSV and CEGH EC RCC CEGH, PSV, EFET, Eurelectric 15:00Coffee break 15:30AOB 16:00ClosureCo-chairs

27 IG meeting agenda – 2 Agenda itemResponsible 14:00 Presentation session III - Regional Cooperation in the Third Package - Regional Entry Exit Tariff System: Update - Hub development PSV and CEGH EC RCC CEGH, PSV, EFET, Eurelectric 15:00Coffee break 15:30AOB 16:00ClosureCo-chairs

28 Action Point 6: Hub development as regional balancing market (I) Suggested next steps  Lead: PSV/EFET and CEGH/EFET  Next steps:  Separate workstreams and update on implementation of next steps according schedule  Timing:

29 Action Points 1-3 Implementation TFActions Responsible/ Result until Best-practice standardised bulletin board TAG GmbH to circulate document outlining the features of the standardised bulletin board and the timetable for implementation by all TSOs of the region to stakeholders for comments 15 December 2007 Summary of planned investments in the region (incl. Storage) NRAs to complete natural gas demand forecast (national level) RCC to ask shippers and traders (EFET and EURELECTRIC) to submit their estimates regarding natural gas demand and storage need per country in the region RCC to ask TSOs and SSOs to cross check the information provided and update it if required 31 December 2007 Removing remaining obstacles to implementation of IPA/OBA Murfeld and Gorizia: conclusion of IPA/OBA Baumgarten: CEGH to coordinate with TSOs to conclude IPA/OBA 31 December 2007

30 Action Points 4-6 Implementation TFActions Responsible/ Result until Best practice provision of OSS service Regional ISO TSOs of the region are invited to join the GATRAC platform EFET to circulate their paper on a Regional ISO for comments TSOs of the region/ November 2007 REETS AEEG to circulate REETS simulation study to stakeholders for comments AEEG/ 31 December 2007 Hub development as regional balancing market PSV: implementation of independent Market Operator for the balancing point, RCC to monitor implementation according to action plan CEGH: implementation of back- up/back-down services, RCC to monitor implementation according to action plan IBF TF/ March 2008 CEGH and EFET/ March 2008

31 IG meeting agenda – 2 Agenda itemResponsible 14:00 Presentation session III - Regional Cooperation in the Third Package - Regional Entry Exit Tariff System: Update - Hub development PSV and CEGH EC RCC CEGH, PSV, EFET, Eurelectric 15:00Coffee break 15:30AOB 16:00ClosureCo-chairs

32 Any other business-AOB Proposed date of next meeting  Suggestion: Next meeting (SG meeting) end of January 2008  Key: Progress report and participation of stakeholders  Regulators only to facilitate the process Context of regional activities  Next Madrid Forum on 16th/17th October 2007  ERGEG to report on progress  Update on issues regarding transparency (Outcome of recent survey)